Friday, August 15, 2014

Ganesha Ecosphere - Turning Waste Into Useful Resources



HAPPY INDEPENDENCE DAY TO ALL THE VIEWERS!!!!!

In his first Independence day speech, PM Narendra Modi said "Let us think about 0 defect - that our products are not defected and 0 effect - our products have no adverse effect on the environment". Our new pick is concentrating on the 2nd clause of that statement, by trying to reduce the environmental pollution with its innovations.

Ganesha Ecosphere is India’s largest waste recycling company (with 21% market share), primarily engaged in the recycling of Polyethylene Terephthalate (PET) bottles to produce Regenerated Polyester Staple Fiber.
It recycles more than 2 billion bottles annually and is one of the leading environmental friendly companies in India. The manufacturing plants are located at Kanpur and Rudrapur (Uttaranchal, India).
The company is having the most modern pet waste washing and recycling facilities, which ensure the recycling of waste in environment and people friendly manner. It is having all environmental clearances from concerned departments for its facilities.

How Does It Works?



Application Areas:



Details About Applications Of Products Manufactured By Ganesha Ecosphere:

Recent Recongnizition:
The world’s biggest cola company – Coca Cola is recycling PET bottles waste into textile fibres in India, which in turn are turned into fashion items. Coca-Cola’s largest bottler in India, Hindustan Coca-Cola Beverages (HCCB), is demonstrating its commitment to sustainability by developing commercial solutions for recycling PET plastic. In collaboration with Ganesha Ecosphere Ltd. (GESL), the largest PET recycler in India, HCCB established the nation’s first bottle-to-fibre textile recycling operation.

The best thing about the company is that, their raw material itself is PET bottle waste. Nobody would deny that the use of PET bottle is going to increase in coming years. And with increasing use of PET bottles, the raw material will be easily available to the company. Hence the selection of a company, whose end product is linked to textile industry.

My Views:
I know I am once again, going with a company having higher debt, but there are some factors, which forces me to invest in a company. In case of Ganesha Ecosphere, the company looks very good fundamentally in all the parameters except the debt levels. As I said earlier also, if the company is involved in a strong business, with good growth and promising balance sheet, I won't reject the company just on the basis of high debts. Because of that, I know, the appreciation might be less or delayed, but other factors are too attractive for me not to invest in it. Being a long term investor, I won't mind if the stock price appreciation is less or gets slightly delayed. As far as I believe, if management is efficient, these things will get back on track, as the company grows in size.
Looking at numbers, the company is growing at a CAGR of 20% in sales and 22% in profit, in last 5 years, which is pretty decent. To add to that, because of recent collabrations with some of the top companies, the sales are bound to increase in coming years, at a stronger pace. The recent Q1 results proves exactly that, with a sales growth of 65% and net profit growth of 14% yoy. The net profit growth was sub-dued when compared to sales growth, but that was on account of almost double finance cost this year.
Currently, based on FY'14 numbers, the stock is trading at a P/E multiple of 6, which leaves plenty of scope for appreciation in future. As I said earlier, the stock might move slowly, but patience will pay in the long run, because I feel, the business they are involved in is great, and is expected to grow at a healthy pace, with companies looking forward to save the nature.
This stock is operating under a new sort of segment, hence difficult to give targets on it. And because of that same reason, I would suggest everyone to perform their own detailed study before investing in the company. As always, any investment you make, should be based on your belief and not only on someone else's thinking.

137 comments:

  1. dear kunal,

    your view on the recent results of both ganesh ecogreen and steel strip wheels,in ssw it has disappointed a bit does the big order has been reflect in the current quarter or next quarter.

    regards
    ram hyderabad

    ReplyDelete
    Replies
    1. In my opinion, SSWL results are fair, with sales growth of 13%. Flat as far as profits are concerned.
      The company has a habit of declaring the sales and volume growth every month. The numbers look much better for the month of July and August, when compared with Q1. Hence you can expect a better performance in Q2.
      I would recommend a hold, even if stock sees some downside. Infact, I would be a buyer at such dips..

      Delete
  2. Hi Kunal,

    Entered Ganesha Ecosphere at 81, had some doubt whether my decision was correct or not as it had huge debts. Now, I am assured that it was right :)

    Thanks
    Anshul

    ReplyDelete
  3. Hi kunal is suven life science a buy @ 116 for long term.....

    ReplyDelete
    Replies
    1. Replied same query just 2 days ago..
      Pasting it here again..

      Suven has had a tremendous run up in past 1 year, but still, I feel it has lots of potential going forward also. It is operating in high margin business of crams, hence the profitability of the company will always be higher. I would still prefer to be an investor here for decent returns even from these levels.

      Delete
  4. Hi Kunal,

    Please frame your queries/questions/explanations required for Gulshan Polyol and Ricoh India's AGM !! :)

    ReplyDelete
    Replies
    1. Actually I didn't find time to look at any of the company's annual report yet...
      Will do that as soon as possible... :)

      Delete
    2. And most important for Photoquip India too !!! I may attend all the three AGMs subject to suitability of dates !!!

      Delete
  5. Hi Kunal,

    I was just checking up the CORVI's sales figures. Last year in the first six months they have done Rs.6.60 crores whereas this year in the first three months itself they have done Rs.7.05 crores. :-D !!! No doubt last year was the first year of operations still I would term the sales as excellent. I expect around Rs.35 crores topline for Led Lights this year and probably by year end they should break-even.

    ReplyDelete
    Replies
    1. I agree with topline number, but I think, they should break even within next 2 quarters, as far as CORVI sales are concerned, and probably they should post some profit on annual basis...
      May be, I am little more optimistic than you... :)

      Delete
  6. Hi Kunal,

    Gulshan Polyols has done a capex of more than Rs.60 crores during 2013-14 !!! And that is something big particularly when the production cycle is likely to pick up in the second half of 2014-15 !!!! May turn out very encouraging numbers !!!! Investors may watch for this scrip !!! And heartening to note that the counter is available a good 25% cheaper available from the recent high. Have again started shopping :)

    totalview

    ReplyDelete
  7. Just noticed, Promoters of Ganesha Ecosphere have pledged 74.82% of their holding.
    Isn't it bad?

    ReplyDelete
    Replies
    1. I think I have explained the reason why I like it in spite of such high amount of pledging....
      I like the business they are in, and I am ready to take a risk of investing, although they have some debt concerns..
      And yes, I don't directly call pledging as bad, unless I know the reason for it....
      But it is definitely taken as negative in practical...

      Hence, I mentioned about those things in details, and requested everyone to understand the risk before investing. Please don't follow someone blindly, till the time, you are not fully convinced..

      All the best!!!!

      Delete
    2. Thanks a lot KB ji.
      Keep posting such amazing analysis for the benefit of small investors.

      Delete
    3. Hi Kunal,

      Something on pledging of shares !!! Not always pledging is bad !!! As we know that Hotel Industry has been passing through bad patches for quite some time. Royal Orchid Hotels is one such scrip which constructed a 5-Star Hotel at Hyderabad costing around 180 crores. Now the revenues could not match with the investment incurred and started bleeding on P & L A/c. But promoters being thorough professional could sense it very fast and approached Bankers for CDR-route. Now one of the conditions of CDR package was that they have to either bring in additional equity(which would have diluted equity base) or pledge entire promoters' shareholding which is very high around 70%. They opted for pledging of entire promoters' equity. Now in this case I shall call it a positive development though on the face of it would look like very negative. In the meantime they sold out the Hyderabad property and repaid substantially to the Banks. They could save the entire venture which consists of many hotels and projects. Therefore, one must know the reasons why the pledge route has been invoked. However, I agree that probably in four out of five cases it may turn out to be negative particularly when the business is not doing well.

      totalview

      Delete
    4. Excellent write up, and it is the same reason I said:
      And yes, I don't directly call pledging as bad, unless I know the reason for it....
      In the answer to that question..

      Delete
  8. Thanks Kunal I that case will it be aright choice to switch from Bilcare due to poor factors to suven life science....kindly advice....

    ReplyDelete
    Replies
    1. That has to be your decision..
      Can't help you in comparison between 2 companies. I can comment on their individual fundamentals, but its always risky comparing 2 companies, and that too in different business...
      But yes, only conclusion I can derive, is that Bilcare needs some time, to get things back on track, where as Suven is at its peak, as far as performance is concerned....
      Hence a safer stock when compared to Bilcare, at present...

      All the best!!!!

      Delete
  9. Hi Kunal,

    Look at the quarterly results of Shree Ganesh Jewellery House for the last four quarters !!! How mastermind manipulations can be effected and how investors' wealth can be robbed !!! A live example as to how one has to be careful while investing in small caps !!! They were paying very decent dividends and now it's a CDR case with hardly any sales :(

    ReplyDelete
    Replies
    1. Absolutely true...
      That is the reason why appreciation is relatively lesser for companies with higher debts, in spite of their performance. There is always a risk like that, and hence clarity or transparency from management is considered to be one of the biggest factors while investing in any company....
      In past few years, we have examples like Bilcare, Orchid Chemicals, Zylog Systems, Glodyne Technoserve to name a few, which can be used for studying by investors to understand the risk involved, irrespective of capitalization, I would say, but yes, chances of such companies being small or mid caps is higher....

      Thanks for bringing out such examples. Highly appreciated...

      Delete
  10. Hi. Kunal....if I need to understand better will i get returns from SLS on a slow pace or high pace as you mentioned its performance is at peak...there is one website niftyhistorical which has given a target of 480 in 2 years time for SLS.

    ReplyDelete
  11. I think it is better to concentrate in 8-10 good businesses than put money in different stocks thereby diluting the returns as well as augmenting the risk . Small caps rally if at all halted , nay , reversed it might wipe out investors money in a big way .
    Investing in ganesh ecospheres is a risky venture, almost like a gamble . I like some of your recommendations and not all .

    ReplyDelete
    Replies
    1. I totally respect your personal opinion, no denying that.
      But according to what I feel, investing in any company is a gamble. Whenever I invest in a company, I am betting on its performance in future, and taking a risk, that my study due to which, I gambled on particular company, will come true..

      I don't think I am so informed that I know everything about the upcoming performance. And if I don't know that, and I am still investing, it means I am playing a gamble.

      However, the level of risk/gamble, varies from company to company. Those, with strong set of customers, and good developments in pipeline, can be considered a safe bet, but still a bet.

      These are strictly my views, and I fully respect what others think too.

      Whenever I write in my post that please invest only when you are fully convinced, or something like that, I mean the same thing that please form your belief about investing in companies, and if my study, matches all your parameters, then only invest in a company.
      Please read the last line of this post once or once again, if you have already read. :)

      Delete
  12. Hi lunal, what's your take on Bhageria Chemicals n dyes? It shown tremendous growth this Quarter. Look promising track record. Any advise on the same?

    ReplyDelete
  13. Sorry, typo in name above, its Kunal 😊

    ReplyDelete
    Replies
    1. Not tracking the same...
      However had a look at the growth you were talking about.
      It seems that turnaround started last year only...
      Will have to dig in more, to get the details..
      No comments as of now..

      Delete
  14. Kunal, your view on williamson magor and company ltd.

    ReplyDelete
  15. Please update me on grauer and weil india ltd.

    ReplyDelete
  16. Kunalji can Astra Microwave be bought at CMP with a Long Term View?

    ReplyDelete
  17. Hi Kunal,
    There is a fmcg company listed on BSE called Tasty Bite foods. The recent quarter it has turned out decent numbers and does look cheap . Do take time to read its Annual report and lets us see if we could consider it as an investment case.

    Regards.

    ReplyDelete
    Replies
    1. Thanks for that, will definitely take a look...

      Delete
  18. one more research firm bullish one this and sets target of 175 in next 1 year

    http://www.moneycontrol.com/news/stocks-views/ganesh-ecosphere-may-test-rs-175-says-aashish-tater_1149885.html

    I'm still away from this at the moment. :)

    ReplyDelete
  19. sir do u think heritage food to be a good money maker ?

    ReplyDelete
  20. CRISIL raises Dhanuka Agritech`s fair value to Rs 470
    Link: http://www.moneycontrol.com/mccode/news/article/article_pdf.php?autono=1159685&num=0

    CRISIL raises fair value of Cera Sanitaryware
    Link: http://www.bseindia.com/xml-data/corpfiling/AttachHis/Cera_Sanitaryware_Ltd_160814.pdf

    Ajanta Listed on Forbes Asia's '200 Best under Billion' 2014 for 3rd consecutive year
    Link: http://www.bseindia.com/xml-data/corpfiling/AttachLive/Ajanta_Pharma_Ltd_190814.pdf

    ReplyDelete
  21. Gulshan Polyols to consider issuance of Preferential allotment of shares on 22nd August 2014 !!!

    ReplyDelete
  22. sir what is your take on aksh opti fibre .can it be a multi bagger ? please comment chinmoy

    ReplyDelete
    Replies
    1. Not tracking the sector itself... can comment on individual stock from that space...

      Delete
  23. Hi kunal, ur views on ahmednagar forging??
    Except debt , I find everything interesting.
    Well, sold few granules and made rest free.
    Added caplin point....marico kaya...kopran....astec life!!!
    -Anand Patel

    ReplyDelete
    Replies
    1. Ahmednagar Forging is a decent pick for long term....

      Delete
  24. Hi Kunal,

    Gulshan Polyols Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on August 22, 2014, to discuss on Preferential Issue pursuant to Section 62 of the Companies Act, 2013 and as per the SEBI (Issue of Capital and Disclosure Requirement) Regulation, 2009.

    Why not rights issue, if they need funds?

    Regards.

    ReplyDelete
    Replies
    1. Hi Sameer,

      First thing, I can't comment on why company took a particular decision. I can only look at the possibilities, but finally, only the owners know why are they doing what they are doing.

      I think main reason why company chooses from preferential route is that, the investors participating in preferential issuance are not necessarily existing shareholders, and in most of the cases, they are private firms or banks etc., whereas in right issue, its about issuance to existing shareholders only.
      Hence, if company has a better prospect, they can issue the share at a higher price to private firms. Discount in right issue is generally bigger than preferential route.

      However, this is only what my understanding is. Can't guarantee why company is going for that route.

      Regards.

      Delete
  25. Hi Kunal,

    Singer & Marico Kaya are rocking :) Both have their distinct advantages !!! Your views !!

    totalview

    ReplyDelete
    Replies
    1. Still not conluded on any of the 2.
      Marico Kaya is in good business, but no competitors, so nothing to compare with and also, I am waiting for few more quarterly numbers from the company, before deriving any conclusion.

      But yes, potential is there. Lets wait and watch.

      Delete
  26. Hi Kunal,

    Could I accumulate Ganesha Ecosphere at current levels for 2-3 years?

    Regards.

    ReplyDelete
    Replies
    1. I think it has aprreciated by only 20% so far. It was recommended just 6 days back. Don't think its too late now, if you geniunely have 2-3 years horizon...

      Delete
  27. Sir, Your View on Sundaram Fastner? can it be bought at CMP?

    ReplyDelete
    Replies
    1. Not tracking it, but not quite attracted by the growth in business, considering a company with market cap of 3000 Cr, on first look...

      Delete
  28. Any idea about datamatics global

    ReplyDelete
  29. Firms with pledged shares less likely to 'manipulate' earnings.

    http://www.business-standard.com/article/markets/firms-with-pledged-shares-less-likely-to-manipulate-earnings-114081800010_1.html

    Hi Kunal, this article should allay fears about high promoter pledging in Ganesha Ecosphere.

    Regards.

    ReplyDelete
    Replies
    1. Good one...
      Light at end of the tunnel, for those who hate companies with high pledging... :)

      However, those thinking negative about the same fact, are also true, in some sense..

      Delete
    2. kunal what's your view on Mirza International Ltd.? can it be a multi - bagger from current Levels?

      Delete
    3. I think, we had a discussion regarding comparison between Mirza Intl and Superhouse, some 9 months ago, when I wrote about Superhouse here:
      http://fundamentalstockideas.blogspot.in/2013/11/few-interesting-micro-caps-that-may.html

      That time, when Superhouse was trading around 75 levels, I preferred it over Mirza Intl. Now when Superhouse is close to 190, I think Mirza and Superhouse, are at same sort of valuation.

      If you want 1 from that industry, neither of them is bad option. You can go with any one. As such, I am not a big fan of leather industry, because government policies on leather exports are strict. :)

      Delete
  30. sir how do you value bilcare at present situation?please reply when time permits

    ReplyDelete
    Replies
    1. Sir, Bilcare is discussed twice or thrice is past 2 threads. Please use search functionality to check that. No change in views from there.

      Good if you are a very long term investor. Turn around may take time also. You never know. Hence you got to have patience

      Delete
  31. Hi Kunal,

    Photoquip is witnessing good volumes as also somewhat increased price movement !!! Perhaps FB postings are coming to the rescue :-D

    totalview

    ReplyDelete
    Replies
    1. It can give the stock some positive direction to move, but I think, unless, they start showing some profits, the jump might not be significant. Only time will tell..
      However, the volumes are not that large at this moment, to get attracted to...
      Lets see how things goes ahead..
      But yes, there is some hope, looking at movements in this week...

      Delete
  32. Kunal, Kindly share your view on ybrant digital. Can i enter at current price. Is it operator hyped rate.

    ReplyDelete
    Replies
    1. Not tracking it deeply, but don't think the rate is too high, looking at the business they are operating in. However, the same business, makes it difficult for me to judge anything about their future...
      I can only say that the company is good, but its difficult to predict their growth, because with constantly increasing focus on this sector, new players are coming up everyday, which could eat up some business, from market leaders...
      The sector has a very bright future, but unfortunately, can't comment on individual names, as of now...

      Delete
  33. Gulshan Polyols to issue 10 lakh shares in total consisting of 5 lakh shares and 5 lakh convertible warrants @ Rs.175 to FII !!!! Resolution to be approved in the next AGM on 20th September 2014. Your views.

    totalview

    ReplyDelete
    Replies
    1. Decent price it seems, though I was expecting it to be slightly higher.
      However, it will act as a great boost, as some new big players might get attracted by this move, especially when FIIs are involved..
      The stock should continue to do well in near future in my opinion...

      Delete
    2. In fact, I see a huge positive in this move !!! Best of all, it gives credibility to operations and CMP !!!! I shall not be surprised if it adds a good premium to new shares by the time proposal is through in the AGM !!!! It looks issue will be two tranche - this year 5 lac shares and next financal year again 5 lakh shares by conversion of convertible warrants. And the beauty is that not a single share will form part of floating stock i.e. as good as promoters' equity :D

      Delete
  34. Kunal sir, your View on Asian Granito Ltd.? Had a decent run in this week. Can it be bought at CMP or should wait for some correction?

    ReplyDelete
    Replies
    1. Not tracking it deeply, but a decent stock. Not sure about its multibagger potential though.
      Always buy in parts if you have doubts. Use dips to buy more and average out.

      Delete
  35. Hi Kunal,

    Great development for Gulshan indeed. Recently Mayur Uniquoters allotted preference shares to Westbridge and it certainly led to its rerating.

    Hopefully Gulshan would also finally get its "long delayed" valuation rerating and attract more long term funds..

    Regards.

    ReplyDelete
    Replies
    1. Atleast it got some, in past 6 months, when it went up from 75 to 200. Waiting for the 2nd round now... :)

      Delete
    2. One of the positive developments arising out of of allotment of 10 lakh shares to FIIs will be promoters` holding will come down to 64.64%. And there will be space for promoters under creeping acquisition route to buy from the market whenever they feel appropriate. In a way a hedge and cushion against unwarranted fall in the market price.

      totalview

      Delete
  36. Hi Kunal,
    Ttk was 7.80 in 2008. A 700 bagger now! Do you envisage any stock that could probably have this kind of appreciation in years to come?
    Regards.

    ReplyDelete
  37. Replies
    1. 12 years is a very long period, you can't say anything about price movements, considering so many years ahead....
      The times have changed, and participation has increased over that period of time..

      If you talk about that same period, we have many such examples.
      Cera Sanitaryware & Ajanta Pharma were both trading at 3 Rs in 2003.

      Its difficult to predict that far, but yes, if the company keeps on performing as per our best case, and if the change in political system, can drive India to become a developed nation tomorrow, then I think, its achievable.

      But frankly speaking, I don't think that far. :)

      Delete
    2. Dear Kunal,
      The trait of human mind goes like this OPPOSITION,CRITICISM and ACCEPTANCE . I think you are honest and candid in your response . My intention was not to prove you wrong . I am believer in small cap stocks too but putting opposing queries can elicit convincing response .

      You have a strong follower base and my opposition may not deter you from your journey .You have some strong and robust stock picks in the past .

      Pl do not take any criticism or opposing words as personal . Just consider the pointers as emanating from different individuals .

      thanks

      Delete
    3. I will never take it personally... you can definitely post whatever you think. I will just reply with my views on the same... :)

      And, as I said, I don't mind accepting my mistakes also. The difference is that I take it as my learning rather than calling it a mistake.
      For eg., the Rs-Dollar drama gave me a new angle of thinking, which wasn't considered by me, till that time, especially when I recommended Cravatex on this blog first..
      The hike in import of Gold, gave me another angle to look at while selecting jewellery stocks, otherwise, I was among the few who thought, Thangamayil could be one of the biggest multibagger...

      I would be more than happy if you continue to post your views on this blog. My only point was that, if you don't like some of the post over here, please don't follow blindly.

      Delete
  38. Hi Kunal,

    Now that quarterly results are over, any new stock that may have impressed you with growth this quarter that may be worth pursuing in detail?

    Regards

    ReplyDelete
  39. Current Watchlist (Not to be taken as recommendation)

    1) FIEM Ind
    2) Poddar Pigments
    3) Flex Foods
    4) Kanpur Plastipack
    5) MetroGlobal

    Will post in detail if all things look good...

    ReplyDelete
    Replies
    1. Hi Kunalji,
      Sometime back I was looking into Kanpur Plastipack. But hold back because :
      (1) High Debt
      (2) They are into business of making bags or Jholla. Do u think it can scale or has future.
      Otherwise nos are OK. Pls share ur views

      Delete
  40. Hi Kunal,

    Thanks for sharing the watchlist.

    Poddar Pigments even I think has good potential as masterbatches have multiple applications.

    Fiem Industries has run up a a lot during past year or so but great stock fundamentally.

    Looking forward to your detailed write-up.

    Regards.

    ReplyDelete
  41. Ganesha Ecosphere is actually in a very good line of business but here's my few takes and concerns regarding the business:

    1. The company has always been in continuous capex mode for the past three to four years, hence its ROCE will be supressed due to this and earnings to shareholders might be affected
    2. The debt burden has also been on the rise due to term debt contracted for their cpex; R-PEt are partly exposed to polyester prices and partly to supply side constraints like ensuring availability of PET bottles/ PET granules all the time as recycled PET and recycled PSF undergo continuous polymerisation process and hence the raw material availability throughout the year will be key determinant.
    4. Operating cycle in terms of collection period is also crucial as in my understanding most of the customers would be from packaging and textile industries. The average collection and payment periods for these industries are quite stressed so not sure how the company mitigates any delay in its receivable collections.
    5. Recycled PSF is mostly preferred as it is traditionally cheaper than Virgin PSF prices.. however the spread between virgin and recycled PSF has considerably declined over the past six months due to cooling off crude prices and stable currency regime.. So with this is mind how will the EBIDTA margins of the company pan out?

    I am sure its an interesting stock. Kunal would love to hear ur responses to these concerns also.

    Regards

    ReplyDelete
    Replies
    1. I think, me being a long term investor, have considered above points, and that is why, I am not giving any short term targets on the script. I agree to most of your points, but we have to understand the fact, that is a new kind of business, and one which could rewrite the future, as it comes with a good cause...

      1) Nature of business is such. It may remain affected, hence going long is advisable.
      2) Debt is higher on account of loan funds, which is used for expansion project. Regarding raw material, the company has 25 strong collection centers across India. It has collection centers near malls, airport, railway station etc., where consumption of pet bottles is higher. PET consumption is growing at a CAGR of 19%, which is not bad for company.
      4) Their marketing team, has a strong follow ups with customers, however, it has been an issue, but their efficient inventory management could be helpful.
      5) Waiting for company's annual report for FY'14, to get more insight on it.

      Regards.

      Delete
  42. Dear Kunal,

    I would request you to please examine Dynemic Products. It is going dirt cheap today. Its PE is only at 4.8. It is a leading food colour exporter of India. 70% of its 116 crore turnover gets exported. Long term debt only 3 crores, plus dividend paying. Its factory is in the heart of chemical industry, Ankleshwar. It has further purchased further piece of land in Dahej which will double the size of the company. I sincerely request your kind self to look into this stock. It will benefit everyone if you approve. My personal opinion is it will become a multibagger. Disclosure - I bought 1000 shares at 50, but now quoting at 43 to 44.

    ReplyDelete
    Replies
    1. I think you are new to this blog. Dynemic Products was already recommended, when it was trading around 28 here:
      http://fundamentalstockideas.blogspot.in/2014/03/dynemic-products-name-behind-colors-of.html

      Stock has already appreciated more than 50%, but yes, as you said, price is still juicy and stock seems to have much steam left yet.

      Please have a look at left hand side widget, to check all reco and their reco price.

      Delete
  43. First reaction of the market on proposed issuance of shares to FIIs @ 175 !!! Stock is locked in UC @ 199.20 with pending buying orders for 14444 shares !!!!

    totalview

    ReplyDelete
    Replies
    1. Heavy FII investment has confirmed good fundamentals of the company...
      Let's see how much appreciation is giving to the stock in this move....
      However, it will be important for company to come out with good numbers, especially in second half of this fiscal, as promised by the management, because the results in Q1 were not up to the mark...
      If this move is supported by good numbers in coming quarters, it could significantly re-rate the stock...

      Delete
  44. Ricoh India is trading around 220 with good volumes !!! It's the highest price range before and after the failure of RBB(DELISTING) !!! With marquee investors having entered the counter, it looks like sunny and brighter days are ahead !!!! Incidentally, those who had bought the scrip for RBB only can now exit the counter with the same amount of profit which they had expected while entering. Exceptional counter !!!!

    totalview

    ReplyDelete
    Replies
    1. With heavy volumes Ricoh India is locked at Upper Circuit @ 226.40 !!!! Upto 1.22 pm more than 2.87 lakh shares have been traded !!!! And this price is all-time high (except a fat-finger trade of @ 251) price on the counter. And the best is yet to come.... However, one should be ready for technical corrections which may again take the counter back in 200 (+) (-) 10% range !!!

      Delete
    2. And finally a block-buster story !!! Is it true?

      http://channeldrive.in/tcil-ricoh-india-bag-rs-2000-crore-rh-tender-by-dop/

      totalview

      Delete
    3. There are good chances of technical correction, especially because the company is moving on basis of its increasing presence and growth, and not on basis of earnings in this rally...
      Smart investors are getting in, but few, who strongly believes in company's profitability above all, might use this opportunity to get out, which could bring in some consolidation..
      However, the stock looks a good bet, for those, who are ready to wait for long..

      Delete
  45. Flex Food is trading ex-dividend @ 63 with good volumes !!!! An established player in it's segment with good export turnover(Make in India) !!! Once it scales up it's operations........

    totalview

    ReplyDelete
    Replies
    1. Looks good to me overall, just checking the sustainability of products, and efficiency of management in coming with more such products in future, which could drive their growth, apart from existing product portfolio...

      Delete
  46. HI,

    Please share your views on kesar terminals

    Thanks
    Anshul

    ReplyDelete
    Replies
    1. Not tracking it....
      Please share if you have some attractive details regarding the company...

      Delete
  47. kunalji i had gone through your views on astra Microwave when somebody asked about it and you told to hold it for Long term. I am holding Astra microwave from 45 rs.(adjusted price taking bonus & splits into consideration) from 2008. Now it had shown a high of 156 rs. but after its good quarterly results its sinking everyday. So, now i am worried as there could be short term correction in the market & how will it react in correction and is it a right strategy to hold it from here on also (in my perspective as i had buying price of 45 rs.) or shift the money in other counters fully or at least partly? Please Guide.

    ReplyDelete
    Replies
    1. When you say that there could be short term correction in market, and you are worried because of that, it means, you don't seem to be a long term investor. That way, it would be difficult to comment anything, especially with Astra Microwave, which I am not strictly tracking.
      I like the business they are in, their product portfolio, their results, and also their balance sheet. Based on that, plus a good news for overall sector, in a way, that govt has decided to hike FDI in defense, could be very helpful to the company, as far as their growth in future is concerned.

      No comments on short term movements, but one can definitely hold it for long term.
      However, whenever you are in doubts regarding you entry/exit in any company, do transactions in parts, so that risk is slightly averted.

      All the best!!

      Regards.

      Delete
  48. Gulshan Poly, Ricoh India and Dynemic Products - All dancing on the floor !!!! Is it the time for technical correction ? Well it seems Gulshan has still steam left for this leg of rally !!! Ricoh may or may not correct !!! Dynemic should show some dynamism before settling down !!!

    ReplyDelete
    Replies
    1. Ricoh almost a 1000 Cr company now. Thats quite an achievement...

      Don't think we can expect heavy correction in Gulshan from these levels.
      Not quite sure of other 2.

      Delete
    2. Gulshan Poly has already undergone it's technical correction i.e.from 220 to 165, a neat 25% !!!!! Dynemic is still testing deeper waters and treading cautiously !!! Ricoh has already seen the worst and most of the weak-hands are out !!! No doubt it has appreciated 50% in just 10 trading sessions !!! But one thing is reasonably certain that all have long journey to perform !!!

      totalview

      Delete
  49. Camlin Fine Sciences Ltd has informed BSE that the Company has fixed September 05, 2014 as the Record Date for Sub-Division of Equity Share from face value of Rs. 2/- each to face value of Re. 1/- each.

    The move wasn't expected and wasn't required in my opinion.

    ReplyDelete
  50. Ricoh India (erstwhile RPG Ricoh) has received an order worth close to Rs.1400 crore from Indian Department of Posts. The Rs.2000 crore order was divided between Ricoh India and Telecommunications Consultants India Ltd (TCIL), a Govt. of India Undertaking. TCIL has bagged order worth Rs.600 crore and Ricoh India got the rest from the Department of Posts.
    The Bombay Stock Exchange listed Ricoh India clocked Rs 1,047 crore sales turnover in fiscal March 2014, thrice more from Rs 300 crore clocked in fiscal 2003.
    The company sells a range of over 30 models of multi-functional products (MFPs) which combine copiers, printers, scanners and faxes in the country. These machines imported from Ricoh factories around the world are priced in the Rs 50,000 – Rs 1.5 lakh range."

    Copied from pressreleasewatch

    ReplyDelete
  51. And Ricoh India & Gulshan Polyols are locked at Upper Circuit at 257.65 and 219.60 respectively since early morning with pending orders for 73500 and 16700 shares !!!!!

    ReplyDelete
    Replies
    1. http://rakesh-jhunjhunwala.in/not-too-late-to-join-stock-wizards-ramesh-damani-kenneth-andrade-into-ricoh-india/

      Delete
  52. Marico Kaya is rocking and locked at Upper Circuit @ 562 !!! A niche segment Company with no parallels !!!!

    totalview

    ReplyDelete
    Replies
    1. Great to see people taking a risk in such new segment and getting rewarded... :)

      Delete
  53. Kunal whats your view on Galaxy Entertainment. Can it be bought at CMP?

    ReplyDelete
  54. Finally Gulshan Polyols closed at 219.60 it's 52-week's high !!!! It has travelled a lot since 29th August 2013 when it quoted at Rs.56.00 and the journey has just begun !!!!

    totalview

    ReplyDelete
  55. Sir do u track Eon Electric. If not i would request you to please see this one. i had studied on it and i assume it could be a turnaround story and from last 2 days there is some action started into it. Please guide if this can be bought at CMP. Your expert view needed.

    ReplyDelete
    Replies
    1. Their product portfolio is very big, but they need to make their presence strong, in at least 1 or 2 products from that list. That will make chances of revival higher...
      I would rather wait and see if numbers start improving, only then will I enter, even at the cost of entering late in rally....

      Delete
  56. A freak-trade took place on 11th June 2014 (probably because of fat-finger) at Ricoh India counter @ Rs.251.10 with sizeable volume !!!!! But today that guy must be smiling as counter was locked at Upper Circuit @ Rs.257.65 since early. Moral of the Story : Freak-trades are also profitable provided one has got patience !!! :-D

    ReplyDelete
    Replies
    1. If selected company is fundamentally strong... :)

      Delete
  57. how do you see cebbco . is it a scrape stock ? please reply

    ReplyDelete
  58. Singer India has come out with it's quarterly and Annual results !!!! Topline has gone up by 37% !!! Quality of bottom-line has improved tremendously !!!! It seems brand is getting re-established in the market. Looking to the potential of Indian markets vis-a-vis Sri Lanka, Bangladesh and Pakistan and existing business in the sub-continent and also entry of Singer India in consumer white goods products, it merits a look as long term bet !!!

    totalview

    ReplyDelete
  59. Suven Life Sciences very close to be first 7 bagger among all the stocks recommended on this blog and surpassing the returns given by Ajanta Pharma so far...

    The same was achieved in only 14 months, which is quite amazing to see.
    http://fundamentalstockideas.blogspot.in/2013/06/few-more-multibaggers-for-long-term.html

    ReplyDelete
  60. Hi Kunal have a look at black rose chemicals and advicd

    ReplyDelete
    Replies
    1. Will take a look. Anything specific that you like about the stock?

      Delete
  61. Gulshan Polyols and Ricoh India again locked in Upper Circuit at 230.55 and 270.50 respectively. Beauty was both were locked since pre-opening trading and during trading hours circuits were open for some time. Very heavy volumes witnessed i.e. Gulshan Poly for more than 53K shares and Ricoh India 3.54 lakh shares till 10.50 AM !!! Both the counters have attracted attention of Retail, HNIs and Institutional Investors !!! Re-rating is underway on both the counters !!! One on the strength of established performance and excellent prospects and the other on sheer explosive growth prospects !!!! Let us see how much strength they have !!!! Lambi Race ke Ghode (now plural) :-D

    totalview

    ReplyDelete
    Replies
    1. As far as HNIs are concerned, it will be more beneficial for Gulshan, as it has always been highly illiquid stock, and failed to attract big investors. However, this time, it is looking good with such heavy volumes on the counter, even at this rate...
      Looks like we might have plenty more to come in future..

      Ricoh, in this rally, has caught the attention of almost all big investors... The volumes are indicative of the same fact. Lets see how much it can travel further...
      It seems promoters would be now repenting their decision of cancelling the delisting proposal... :)

      Delete
    2. Two HNI value investors have already entered Gulshan Polyols with substantial holdings !!!

      totalview

      Delete
  62. After encouraging performance on all parameters Singer should attract attention of HNI and Institutional Investors if not now atleast after next quarter performance !!! MNC pedigree will add to its premium valuation !!! However, right now it's trading at a PE of 25 !!!!

    totalview

    ReplyDelete
  63. Marico Kaya has really transformed it's skin with it's skin-care treatments in very a very short period of less than two months !!! When the stock got listed arising out of demerger there were hoards of sellers in lakhs and lakhs on both BSE and NSE around 225 !!!! Now looking at the screen where it's popping 580 it looks like a sweet dream having gone completely broken for an investor like me who could pick up a few hundred !!! Rightly said "Jo dar gaya samjho mar gaya" !!!

    totalview

    ReplyDelete
    Replies
    1. My above writing on Marico Kaya should not be taken as recommendation to buy at CMP :-D !!!

      Delete
  64. I don't understand one thing - when Marico kaya was trading at 250-350 range no-one, even "totalview" was hesitated to say buy it now and suggested to wait further meaning had low confidence, But when it got rerated to 580 now everyone coming up and recommending to Buy Buy..why views are getting changed when stocks moves up or other way round.
    You people have very strong exp in this field and I'm just beginner, initially even I thought the price is too high and did not judge the valuation. Yes they have monopoly in that business/sector.

    what I believe or understood so far that some stocks runs on people's sentiments first and then by fundamentals...what says?

    ReplyDelete
    Replies
    1. Hi Mayur,

      Your point is valid.

      And let me tell you that I am still on that same opinion, and for your information, I still haven't bought a single share.

      See, when you talk about our low confidence, that is because, it's into a new segment, and we are not sure on how valuation will be given to this new segment.
      All stocks from different sectors, have different average P/E ratio, which indirectly means, that, each company is also valued on basis of its sector also, and not just based on its core fundamentals.

      Secondly, you mentioned that "even, you thought the price is too high". We never said that, it was just that, we were not sure of what price is too high or too low.

      Thirdly, you said that stocks runs on people's sentiments first and then by fundamentals. I never take any company that way. What I believe in, is that, if the fundamentals are good, more often than not, people's positive sentiments are bound to come on it, and then surprise you with the rally....
      This is applicable to companies in existing sectors. In case of Marico Kaya, it was new experience for me, and I have learned from that.

      Finally, I would say, you have observed behavior and based on it, formed your belief about companies and markets. That means you are not a beginner any more... :) :D

      Delete
    2. Thanks for the clarification and thats one more reason why i like this blog :)
      As long as marico kaya is concerned, lets see how long it continue upward journey, if i get chance to enter at low price will definitely go for it.

      Now a days stocks with even good(not strong) fundamentals are flying like rockets. Earlier I think ppl tends to target for 25-40% growth on yearly basis but now you get those type of returns in couple of months or qtr. This may be because of market awareness in ppl and their interest beyond traditional FDs :)

      Delete
  65. Photoquip India is witnessing regular modest trading volumes with good delivery and hardening of share price. In the last 8-9 trading sessions more than 22K shares have been delivered. It seems promoters' proxies are at work.

    totalview

    ReplyDelete
    Replies
    1. Still not convincing volumes.... :(
      Rather than promoter proxies, I am looking for some retail participation on this counter...

      Delete
    2. Retail participation is ruled out unless there is improvement in the performance of the Company or Company comes out with aggressive ad campaign which is doubtful as it involves substantial cost !!!!

      Delete
  66. Please if you could throw some light on the land bank of control print and its valuation and how it can change the future valuations of the company..moreover what is your future outlook for the company based on its sector related with e-commerce.

    ReplyDelete
    Replies
    1. Like Control Print....
      Positive on it in terms of valuations also...

      Delete
  67. Hi, studied annual reports of caplin point since 2008. After completion of their recent plant CP4, capacities will be around 3/4 th of ajanta.... Well i notice that since 2008
    traded good:manufactured goods = 1.5:1. Why do this company making their main business trading ? Turnover is just going towards 200cr with huge scope for increments. If you haven't studied this company in depth, plz go through a little bit... Trading is providing very high margin , is it possible? Or have I misinterpreted trading goods meaning? Little bit confused over this one thing about company.

    ReplyDelete
    Replies
    1. Will have to take a look at caplin..
      Will let u know after study...

      Delete
  68. Hi Kunal, I would like to give you few hints. Please if you could crack this puzzle...Am a big fan of yours...I hope you wont deny..Please let me know this stock....

    This company operating in an Industry with decent growth potential.

    # One promoter of this company is a well experienced veteran in this industry

    # Co promoter of this company is another listed company which is one of the market leaders in an Industry .

    # Promoters are holding more than 50 % stake in this company.

    # Company’s current market cap is less than 25 % of its last year Sales.

    # Face value of Stock is Rs.10.

    # It is listed only in BSE.

    # Company is more than 40 years old and listed in BSE for more than 10 years .

    # In latest June quarter , Company reported growth in top- line and bottom line both on yearly and sequential basis.

    # In latest June quarter , company reported sharp improvement in its OPM and NPM.

    # MD of the company changed during last FY ( 2013-14).

    # At the end of FY 2013 , company's debt is less than Rs.5 Cr.

    ReplyDelete
  69. Hi Kunal, I'm a silent follower of your blog since quite long and a great admirer of the great work that you are doing. Could you please share your analysis on Q3 results of Ganesha ecosphere.

    Thanks.

    ReplyDelete